The European offshore wind industry key trends and statistics 1st half 2014
offshore windWind
industry Energy
- key trendsAssociation
and statistics 1st -half
2014
A reportThe
byEuropean
the European
July
2014
1
Contents
Mid-year European offshore wind energy statistics....................................................................3
Summary of offshore work carried out during the first half of 2014.......................................4
Developers.......................................................................................................................................5
Wind turbines..................................................................................................................................5
Financing highlights in H1 2014 and outlook.............................................................................6
Data collection and data analysis:
Author: Giorgio Corbetta, European Wind Energy Association (EWEA)
Contributing authors: Iván Pineda, Justin Wilkes (EWEA)
Financing highlights: Jérôme Guillet (Managing Director, Green Giraffe Energy Bankers)
Revision and editing: Zoë Casey (EWEA)
Design: Clara Ros (EWEA)
Cover photo: Siemens AG Energy Sector
The European offshore wind industry - key trends and statistics 1st half 2014
2
Mid-year European offshore wind energy statistics
In the first six months of 2014, Europe fully grid connected 224 offshore wind turbines in 16 commercial wind
farms and one offshore demonstration site with a combined capacity totalling 781 MW. There are 310 wind turbines
awaiting grid connection. Once connected, these will add a total capacity of over 1,200 MW. The total capacity of all
the wind farms under construction is over 4,900 MW when fully commissioned.
New offshore capacity installations during the first half of 2014 were down 25% compared to the same period the
previous year.
FIGURE 1: ANNUAL INSTALLED OFFSHORE WIND CAPACITY IN EUROPE (MW)
1800
1600
1400
1200
1000
800
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
H1
2007
2008
2009
2010
2011
2012
2013
2014
Full year
Source: EWEA
The work carried out in European offshore wind farms
during the first six months of 2014 is detailed below:
• 224 wind turbines were fully grid connected,
totalling 781 MW (down 25% compared to the same
period last year) in five wind farms: Gwynt y Môr (UK),
Northwind (BE), Riffgat (DE), West of Duddon Sands
(UK) and the Methil Demo at Energy Park Fife (UK).
• 233 foundations (35 units fewer than the same
period last year) were installed in 13 wind farms:
Amrumbank West (DE), Borkum Riffgrund I (DE),
Borkum West 2.1 (DE), Butendiek (DE), Dan Tysk
(DE), Global Tech 1 (DE), Gwynt y Môr (UK), Humber
Gateway (UK), Meerwind Sud/Ost (DE), Nordsee Ost
(DE), Northwind (BE), Westermost Rough (UK) and the
Methil Demo - Energy Park Fife (UK)
The European offshore wind industry - key trends and statistics 1st half 2014
• 282 turbines (28 units or 10% more than during the
same period last year) were erected in eight wind
farms: Borkum West 2.1 (DE), Dan Tysk (DE), Global
Tech 1 (DE), Gwynt y Môr (UK), Meerwind Sud/Ost
(DE), Nordsee Ost (DE), Northwind (BE) and West of
Duddon Sands (UK)
• Preparatory work has begun at the 600 MW Gemini
wind farm off the coast of the Netherlands.
In total, there were, on 1 July 2014, 2,304 offshore wind
turbines with a combined capacity of 7,343 MW fully grid
connected in European waters in 73 wind farms across
11 countries, including demonstration sites.
3
Summary of offshore work carried out during the first half of 2014
During the first six months of the year, work was carried out on 16 offshore wind farms and one demonstration site.
Foundations and turbines were installed and/or grid connected in 15 of these and in one demonstration site in three
countries: Belgium, Germany and the United Kingdom.
TABLE 1: SUMMARY OF WORK IN OFFSHORE WIND FARMS BETWEEN 1 JANUARY AND 30 JUNE 2014
BELGIUM
GERMANY
UK
TOTAL
Number of farms
1
10
5
16
Number of foundations installed
1
159
73
233
Number of turbines installed
30
126
126
282
Number of turbines connected
47
30
147
224
MW fully connected to the grid
141
108
532
781
Source: EWEA
FIGURE 2: INSTALLATION OF FOUNDATIONS, TURBINES AND GRID CONNECTION OF WIND TURBINES IN OFFSHORE WIND FARMS
BETWEEN 1 JANUARY AND 30 JUNE 2014
400
350
300
250
200
150
100
50
0
Amrumbank Baltic Borkum Borkum Butendiek Dan
West
2 Riffgrund I West
(DE)
Tysk
(DE)
(DE)
(DE)
2.1
(DE)
(DE)
Number of foundations
installed
Global Gwynt Humber Meerwind Methil Nordsee Northwind Riffgat West of Westermost
Tech 1 y Môr Gateway Sud/Ost Demo
Ost
(BE)
(DE) Duddon
Rough
(DE)
(UK)
(UK)
(DE)
(UK)
(DE)
Sands
(UK)
(UK)
Number of turbines
installed
Number of turbines
connected
MW connected
to the grid
Source: EWEA
The European offshore wind industry - key trends and statistics 1st half 2014
4
Developers
Four commercial wind farms and one demonstration
project connected wind turbines to the grid totalling
781 MW.
Figure 3 shows the share of connected MW per developer from 1 January to 30 June 2014 taking into
account each company’s share in the projects. Power
producers account for over 78% of the installed capacity (over 600 MW).
FIGURE 3: OFFSHORE WIND DEVELOPERS’ SHARE OF NEW GRID CAPACITY CONNECTED BETWEEN 1 JANUARY AND 30 JUNE 2014 (MW)
Units made by three turbine manufacturers were connected to the grid during the period: Siemens, MHI Vestas and Samsung. The former has the largest share of
newly connected capacity (633 MW, 81%), followed by
MHI Vestas (141 MW, 18 %) and Samsung (7 MW, 1%)
which connected its 7 MW demonstration wind turbine
to the grid.
FIGURE 4: WIND TURBINE MANUFACTURERS’ SHARE OF GRID CONNECTED CAPACITY (IN MW) IN EUROPE
BETWEEN 1 JANUARY AND 30 JUNE 2014
Samsung
7
1%
Siemens
633.6
81%
MHI Vestas
141
18%
Aspiravi Offshore
47
6%
Siemens
19
2%
Sumitomo
47
6%
Enova
11
1%
Colruyt
Group
(Parkwind)
47
6%
Samsung
7
1%
Stadtwerke
München
56
7%
EWE AG
97
13%
DONG
Energy
169
22%
Iberdrola
169
22%
RWE Innogy
112
14%
Source: EWEA
Source: EWEA
In terms of units, Siemens grid connected 176 turbines
(79%), MHI Vestas 47 turbines (21%) and Samsung one
turbine.
FIGURE 5: WIND TURBINE MANUFACTURERS’ SHARE OF GRID CONNECTED TURBINES IN EUROPE
BETWEEN 1 JANUARY AND 30 JUNE 2014 (IN UNITS)
MHI Vestas
47
21%
Samsung
1
0%
Wind turbines
During the first six months of 2014, 223 offshore wind
turbines and one offshore demonstration wind turbine
were connected to the power grid, or around 25% fewer
than during the same period in the previous year. The
average size of the wind turbines was 3.5 MW, slightly
less than during the first six months of 2013.
Siemens
176
79%
Source: EWEA
The European offshore wind industry - key trends and statistics 1st half 2014
5
Financing highlights in H1 2014
and outlook
There was considerable financing activity in the offshore
wind farm sector in the first half of 2014, with multiple
transactions on the equity side and the largest offshore
wind financing to close to date: the 600 MW Gemini project in the Netherlands.
The Gemini transaction, which closed on 13 May 2014,
included both equity and debt funding, with independent power producer Northland Power, a Canadian developer, acquiring 60% of the project, alongside contractors
Siemens (20%) and Van Oord (10%), from developer
Typhoon Offshore, with initial investor HVC, the Dutch
waste-to-energy company, keeping its original 10%
stake. The €2.8 billion transaction included a senior
debt1 financing of €2.1 billion provided by a consortium
of 12 commercial banks and four public funding institutions, as well as a mezzanine2 tranche provide by Danish
pension fund PKA alongside Northland Power.
Commercial funding topped one billion euros, with large
individual commitments from banks, showing a healthy
appetite from the lending market for the offshore wind
sector, including construction risk. This appetite will be
further confirmed in the second half of the year with several transactions currently in the market and expected
to close in the coming months, including Westermost
Rough (UK, 210 MW), MEG1 (DE, 400 MW), Nordsee 1
(DE, 330 MW) and Galloper (UK, 340 MW), plus Cape
Wind (370 MW) and Deepwater (30 MW) in the US.
Several of these transactions are backed by power producers, demonstrating their growing appetite for nonrecourse debt in offshore wind.
On the equity side, the market has also been dynamic
with the following transactions closing (in addition to the
equity sale that took place on the closing of Gemini):
MW London Array project to Caisse de Dépôt et
Placement du Québec (CDPQ) in January3;
• Wpd sold half of its remaining stake in Butendiek
(288 MW, DE) in January to Switzerland’s Elektrizitätswerk der Stadt Zürich (EWZ) reducing its participation in the project to 5%4;
• DONG Energy sold 50% of Westermost Rough (210
MW, UK) to Marubeni (25%) and to the UK Green
Investment Bank (25%) in March5;
• RWE sold a 10% stake in Gwynt y Môr (576 MW, UK)
to the UK Green Investment Bank, in March6.
In the UK, Statoil and Statkraft have reached a final
investment decision (FID) on their Dudgeon offshore
wind farm (402 MW), agreeing to invest €1.9bn in the
construction of the project. Dudgeon is the first wind
farm reaching FID under the new UK Contract for Difference mechanism7.
A number of other equity transactions have been
reported as being under way as owners of operating projects seek to recycle capital in light of a growing interest from financial investors, in particular infrastructure
funds and pension funds for operational offshore wind
assets. But as the Gemini and Westermost Rough transactions show, investors are also increasingly looking at
projects under construction and most such transactions
are likely to happen before the end of the year.
Overall, while transactions remain complex and take
time to close, there is an active market for offshore
wind projects and a strong pipeline of new deals. Projects with a well-designed commercial and/or financial
structure are able to find funding for construction or refinancing, allowing the sector to benefit from competitive
capital costs.
• DONG Energy sold half of its 50% stake in the 630
Senior debt takes priority over other unsecured or “junior” debt owed, consequently, it is repaid before other debts in case of bankruptcy.
Mezzanine debt is an equity instrument secured by a claim on a company’s assets.
3
DONG Energy, 31/01/2014 , available at http://www.dongenergy.com/EN/Media/Newsroom/Pages/Company_announcements_
details.aspx?omxid=735456
4
Bloomberg, 08/01/2014, available at http://www.bloomberg.com/news/2014-01-08/zurich-buys-stake-in-german-north-sea-windfarm-developed-by-wpd.html
5
DONG Energy, 31/03/2014, available at http://www.dongenergy.com/EN/Media/Newsroom/Pages/Company_announcements_
details.aspx?omxid=745172
6
Windpower Monthly, 31/03/2014, available at http://www.windpoweroffshore.com/article/1287945/green-investment-bank-takesgwynt-y-mor-stake
7
Dudgeon Offshore Wind Farm, 01/07/2014, available at http://dudgeonoffshorewind.co.uk/news/news01_07_14.php
1
2
The European offshore wind industry - key trends and statistics 1st half 2014
6
Latest statistics published by EWEA
Offshore statistics
The European offshore wind industry - key
trends and statistics 2013
418 offshore turbines came online in 2013
in Europe, making a record 1,567 MW of
new capacity. This is one-third more than
the capacity installed in 2012. This makes
a new total of 6,562 MW of offshore wind
power - enough to provide 0.7% of the EU’s
electricity.
The European offshore wind industry key trends and statistics 1st half 2013
277 new offshore wind turbines, totalling
1,045 MW, were fully grid connected
in Europe during the first six months
of 2013. This is double compared to
the same period in 2012 when 523.2
MW were installed. In addition, 268
foundations were installed and 254
turbines erected, all during the first 181 days of the year.
PUBLICATION DATE: January 2014
DOWNLOAD THE PDF HERE:
www.ewea.org/stats/eu-offshore-2013
PUBLICATION DATE: July 2013
DOWNLOAD THE PDF HERE:
www.ewea.org/stats/eu-offshore-1st-half-2013
Annual statistics
Wind in Power.
2013 European statistics
At the end of 2013 there were 117.3 GW of
installed wind energy capacity in the EU, 6.6
GW of which were offshore. The EU installed
11,159 MW of wind power capacity (worth
between €13 billion and €18bn) during
2013, a decrease of 8% compared to 2012
installations. The wind power capacity
installed by the end of 2013 would, in a normal wind year,
produce 257 TWh of electricity, enough to cover 8% of the EU’s
electricity consumption - up from 7% the year before.
Wind in Power.
2012 European statistics
The EU wind energy sector installed
11.6 GW of capacity in 2012, bringing
the total wind power capacity to 105.6
GW. Wind energy represented 26% of
all new EU power capacity installed
in 2012, and investments of between
€12.8 billion and €17.2 billion. It is now
meeting 7% of Europe’s electricity demand – up from 6.3% at
end 2011.
PUBLICATION DATE: February 2013
PUBLICATION DATE: February 2014
DOWNLOAD THE PDF HERE:
www.ewea.org/stats/eu-annual-2013
DOWNLOAD THE PDF HERE:
www.ewea.org/stats/eu-annual-2012
Other EWEA reports about Offshore
SEANERGY 2020 Report
Where’s the money coming from?
Financing offshore wind farms
Spatial planning of offshore
renewable energies and electricity grid
infrastructures in an integrated EU
maritime policy.
The European offshore wind
energy industry needs to attract
between €90 billion and €123
billion by 2020 to meet its
deployment target of 40 GW.
PUBLICATION DATE: November 2013
PUBLICATION DATE: July 2012
DOWNLOAD THE PDF HERE:
www.ewea.org/report/financing-offshore
DOWNLOAD THE PDF HERE:
www.ewea.org/report/seanergy-2020
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